Small and large dividend stock and ETF investors can use covered calls and puts trades to generate monthly income from options premiums and options trading.
@Rob K Thanks for the nudge. I've been concerned about the high prices of a lot of stocks I'm trading because not everyone has the cash needed to trade 100 shares of 10 $100 to $400 per share stocks or a 100 shares of a $1,000 stock.
I have a watch list of five stocks for a $25,000 portfolio that I'll update and publish. People who have the resources can trade one contract on each of the stocks or 10. It's up to the investor.
If anyone has some low priced but not cheap stocks they would like me to discuss, please let me know.
@Kevin, I've never written about setting up my screens. If you call Barcharts support, they'll help you set up the screens you want. There are some videos available on Barchart.com that help, too.
I hope this helps. If you have specific questions, I'll try to help.
Hello Donald. I too appreciate your articles and trade analysis. Do you have any previous articles that illustrate how you setup the Intraday "Opinions" screen and "Options" screen on your BarChart Watchlist for your '2023 Stocks I owned' list? Thank you.
Hi Donald! I have learned soooo much from reading your trades. Thank you! I was with you on Amazon and it got called away today. I don't understand, or feel comfortable yet with puts so I'm just following the covered call suggestions right now. Someone needs to sit with me like a first grader and walk me through puts. :) Will you purchase Amazon again this week for covered calls or just sell puts? Thanks again for sharing!
Today I checked out the CoveredCallAdvisor.com site. He had just done an in the money trade on Amazon.
And I did my version: I bought AMZN at $144.96. Then I sold AMZN 12.1.23 $142 covered calls for $4.85 a share.
If AMZN dips below $142, my AROR will be about 35%. The net debit on the trade is $144.96-4.85 =$140.11.
But before I did this trade, I collected $8.26 in AMZN puts and calls premiums. So my AMZN net debit is $136.70 - $4.85 on today's trade, or $131..85. I think I'll wind up with a positive RoR on all of my AMZN trades.
I may sell some more AMZN puts that will expire next month, depending on what the stock does. It's looking over bought to me.
Could you find some trades that dont require a 6 or 7 digit size account.
Not everyone has an account size of 600-900K,
you seem to think that just about everyone reading your articles has the cash
to place a 30-40K$ CC on a single trade....
@ROB K I'm looking at this low priced stocks that have bullish point and figure charts and BuyChart.com buy ratings. CLF, USB, KHC, VZ, KO, KMI and T.
Do any of these appeal to you as possible at the money covered calls or cash secured puts trades?
@Rob K Thanks for the nudge. I've been concerned about the high prices of a lot of stocks I'm trading because not everyone has the cash needed to trade 100 shares of 10 $100 to $400 per share stocks or a 100 shares of a $1,000 stock.
I have a watch list of five stocks for a $25,000 portfolio that I'll update and publish. People who have the resources can trade one contract on each of the stocks or 10. It's up to the investor.
If anyone has some low priced but not cheap stocks they would like me to discuss, please let me know.
@Kevin, I've never written about setting up my screens. If you call Barcharts support, they'll help you set up the screens you want. There are some videos available on Barchart.com that help, too.
I hope this helps. If you have specific questions, I'll try to help.
Hello Donald. I too appreciate your articles and trade analysis. Do you have any previous articles that illustrate how you setup the Intraday "Opinions" screen and "Options" screen on your BarChart Watchlist for your '2023 Stocks I owned' list? Thank you.
Hi Donald! I have learned soooo much from reading your trades. Thank you! I was with you on Amazon and it got called away today. I don't understand, or feel comfortable yet with puts so I'm just following the covered call suggestions right now. Someone needs to sit with me like a first grader and walk me through puts. :) Will you purchase Amazon again this week for covered calls or just sell puts? Thanks again for sharing!
Hi Shannon, thanks for writing.
Today I checked out the CoveredCallAdvisor.com site. He had just done an in the money trade on Amazon.
And I did my version: I bought AMZN at $144.96. Then I sold AMZN 12.1.23 $142 covered calls for $4.85 a share.
If AMZN dips below $142, my AROR will be about 35%. The net debit on the trade is $144.96-4.85 =$140.11.
But before I did this trade, I collected $8.26 in AMZN puts and calls premiums. So my AMZN net debit is $136.70 - $4.85 on today's trade, or $131..85. I think I'll wind up with a positive RoR on all of my AMZN trades.
I may sell some more AMZN puts that will expire next month, depending on what the stock does. It's looking over bought to me.
Excellent return considering October's volatility !